Who isn’t tired of debt? It starts off small but over time, when not dealt with, it accumulates into one big mess. Before long, you’re up to your eyes with expenses that you can’t afford, your credit rating is plummeting, and to top it all off, the creditors won’t stop bothering you. If you continue to ignore the problem it could lead to lawsuits, wage garnishments, income tax withholdings, and even bankruptcy. The best thing you can do for yourself and your financial future is start getting those debts out of the way.

But How?

When you’re inundated with debt, those large numbers seem impossible to reduce. Not to mention, you still have to pay for your regular expenses. Though you may not be able to pay it all off in one swoop, you can tackle debt. All you need is a plan. Credit counseling agencies often work with their clients to come up with what is known as a debt repayment plan. This is when you take your accumulated debts and come up with a feasible monthly payment plan to pay the balances in full. The only problem is, you end up paying a lot of that money to the credit counselor for negotiating the arrangement. This is why it is best to come up with your own. Here’s how:

  • Analyze Your Budget – How much can you feasibly afford to dedicate to debt? This means, how much of your monthly income can you use without neglecting your regular expenses and necessities? Review your budget to find out.
  • Know Your Debts – Next up, you need to have a clear understanding of how your debt. Gather all your debts and write down information including the total balance due, interest rate, account status, company name, and account number.
  • Start Small – It can seem like an eternity if all you have is $100 a month to commit to paying off your debt and the debt you’re starting with is $ 10,000. So, start with a smaller bill, pay it off and continue on this way. If you have a bill that would be beneficial to pay off at once (like a credit card that’s about to be sent to collections), you may want to consider using check advance loans to cover the debt and then scheduling monthly payments to repay the installment loan over time.
  • Negotiate Best Terms – These companies you owe are just as eager to have the debt paid off as you are. They also understand that life happens and are often willing to work with their customers to get the matter resolved. Before you start making any payments, contact each of your creditors to find out if they can work out something affordable for you. Some may decide to reduce your interest, others might remove late fees, while older accounts may settle for pennies on the dollar.

You have now created your very own debt repayment plan. Once you’ve made your plans known to your creditors, it is imperative to do your best to follow through. Stick with your arrangements using the snowball method to knock out debts one at a time. If you remain committed, by this time next year, you’ll be a lot richer and certainly, a lot happier.